RREB 1: Synergies in the integration of energy networks for electricity, gas, heating and cooling

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1 Stuttgart, 05/12/ RREB 1: Synergies in the integration of energy networks for electricity, gas, heating and cooling EC Policy officer: Lead author: Authoring team: Reviewer: Javier Castillejos-Alsina Lukasz Brodecki (USTUTT) Ulrich Fahl, Jan Tomaschek (USTUTT), Javier Alonso (KIC IE) Aurélie Faure (IFRI) Hot Energy Topic (HET) Rapid Response Energy Brief (RREB) Policy Report (PR) Time: 4 weeks Time: 6 weeks Time: 6 months Pages: 1-5 Issues: in 3 years Pages: 4-10 Issues: 12 in 3 years Pages: Issues: 12 in 3 years

2 2 Focus Discussions with EC policy officer Objective: to spur discussions on future options and timeline for developing synergies between different networks Case studies: to showcase the different types of network interactions in a multi-energy grid Evolution: impact of increased shares of renewables and transition from uni-directional to multi-directional energy flows Beyond kwh: A more inclusive/comprehensive definition of efficiency increase and renewable integration Modelling approaches & databases: minor focus International cases: putting the EU energy market in context

3 3 Agenda Introduction Background Integrated Energy Network Technologies Conclusion and way forward References

4 4 Introduction European Commission Emission Targets 40% greenhouse gas emission reduction by 2030 compared to 1990 level 27% share of gross final energy consumption based on renewable energy sources by 2030 No mandatory division among individual member states Focus on efficiency, energy mix and spatial distribution Approach Integration of intermittent renewable energy source (solar, wind) Establishment of flexibility mechanisms for energy supply security Utilization of interdependencies between different energy carriers Establishment of an interconnected hybrid grid including secure electricity, gas, heating and cooling supply

5 5 Background: Hybrid Networks Fundamental changes due to increased (fluctuating) renewable share Necessary extension of transmission network Integration of seperate energy networks into connected hybrid networks Electricity Gas Electricity Gas Mobility Heat Mobility Heat Hybrid Network Goal: Utilization of synergies between different technologies Establishment of an efficient and flexible (multi-functional) energy system in compliance with system security Coordination of energy transport, distribution and storage System intelligence in cross-domain network necessary

6 6 Background: Energy Market Growing share of de-centralized electricity generation Multidirectional flows of energy in grid Increasing number of Prosumers Uni-directional Electricity Flow Transformation Bi-directional Electricity Flow Grid! System intelligence for integration of large numbers of small-scale distributed generators Goal: Power transmission with minimal loss and energy supply based on demand for heating, cooling, fuel Hybrid Networks optimize energy conversion processes

7 7 Integrated Energy Network Combines different Energy Markets Electricity Gas Heat Mobility Exemplary Powerto-Gas path as flexibility option Necessity of Intelligence in the energy system Information Communication Technologies CCS Battery storage Heat Pump Night Storage Electrolysis Electro- Mobility CO2 Grid Heat Combustion Electricity Hydrogen Storage <2-5 vol.-% Storage Storage Conventional Generation Renewables Gas Grid Methanation Curtailment Reconversion! Fuel Mobility Import Gas- Import

8 Ø DSM-Potential 8 Information and Communication Technologies Implementation of Sensoring and Metering infrastructure as foundation of an intelligent energy system Passive and active meters Up to 10% reduction in electricity consumption feasible Smart meters basis for Demand-Side-Management (DSM) Forecasted DSM Potential in Europe by GW Lastsenkung Load Reduction Lasterhöhung Load Increase Source: 1 WE, Grote, Drees, Budke, Moser

9 9 Intelligent Grid Architecture Architecture of Future Energy Markets 2 Remuneration for provision of flexibility and ancillary services Market design, business models, Business Layer political/regulatory framework Scenarios, case distinctions for Function Layer various logical functions Information and big data Information Layer models for communication Info-exchange mechanisms between market participants Communication Layer Hardware for information and Component Layer communication tools Question of supervision still unanswered Source: 2 Siemens Smart Grid Architecture Model (SGAM)

10 35,6 59,9 117,9 191,6 10 Heat Pump Potential Currently consumption of 160 TWh/a for resistive electric heating in Europe 3 Gradual replacement by efficient heat pumps (COP ~ 3) Possible reduction of primary energy consumption by 75% Heat Pump Statistics in EU21 4 Not included Romania, Slovenia, Greece, Malta, Lithuania, Luxemburg, Cyprus High market penetration in private household sector, especially in Scandinavian countries Primary energy savings 2013: TWh Primary energy savings 2020: TWh GW el Installed Capacity Energy provided 200 TWh 160 th Sources: 3 Roadmap EHPA

11 11 Combined Heat and Power Co-generation Overall Efficiency ~60-85% CO 2 emission reduction of 65% per kwh (of useful energy output) compared to separate generation 5 Possible extension to combined cooling, heat and power Trigeneration 100 % Conversion losses Electricity Heat CHP High market competitiveness and large market penetration of CHP plants 6 Promotes concept of energy producing consumers prosumers Sources: 5 Green Building Practices 6 IEA 2014

12 12 Power-to-X Water Power-to-Gas 7 Flexibility mechanism Technology Readiness Level (TRL) ~6-8 Electrolysis efficiency 60-80% Electricity Electrolysis Gas Grid Hydrogen Methanation Modulation 1 kw el - 5 MW el Methanation efficiency ~70% Compatibility with Carbon Capture and Storage technology (CCS) Further utilization of hydrogen/methane can be handled according to consumer needs (fuel mobility, gas heat) Power-to-Heat 8 Night storage heaters (in EU27 37 GW el capacity) Electric heating 149 GW el in EU27 by 2050 High potential for DSM measures in an integrated hybrid network CCS CO2 Storage Sources: 7 NEP 2013, Sterner DNV KEMA 2013

13 13 Conclusion and way forward Interactions of different technologies and utilization of synergy effects are part of an efficient energy system (Hybrid Network) Design based on local conditions and under consideration of technology and energy carrier characteristics High complexity and promotion of scientific research Political incentives and stability for planning security Set of precise signals for market framework Liberalization, harmonization and coordination of European Energy market Holistic perspective for energy market Establishment of ICT infrastructure for system intelligence Increasing transparency and balanced data protection

14 14 References 1 Grote, Drees, Budke, Moser, Einfluss des Demand Side Managements auf den Kraftwerkseinsatz in Europa, ET, 12/ Siemens Infrastructure & Cities Sector / Smart Grid Division, Press Release, 2012 May 11 th 3 Roadmap 2050 A practical guide to a prosperous, low-carbon Europe, Technical Analysis, April European Heat Pump Market and Statistics Report 2013, EHPA 5 Elsarrag, Alhorr, Optimisation of CCHP and biomass heating for maximum CO 2 reduction in a mixed-use development, Green Building Practices, Energy Technology Perspective 2014, Energy Outlook 2013, IEA 7 Netzentwicklungsplan Strom Raadschelders, Sikkema, Groen, Potential of Smart Electric Thermal Storage Contributing to a low carbon energy system, DNV KEMA Energy & Sustainability, 2013

15 15 Thank you for your attention! Questions?

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